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ESG Benchmarking
"Our ESG benchmarking process yielded promising results, proving that our company is reporting on all the necessary ESG metrics, with a 20% lower carbon footprint than average for our industry."
Definition
The process of comparing a company's ESG performance to competitors in its industry. This can often be challenging as there is not a universal standard to normalize the data and easily compare it. Undergoing this process allows companies to identify the strengths and weaknesses of their ESG practices, ensure compliance with regulatory requirements, and leverage their ESG performance to apply for sustainability finance tools.
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